Business Tax Information

Taxation for small businesses may be simple or complex, depending on the size and business structure.

Specific tax liability for each type of business is different and you should consult your attorney and accountant regarding comprehensive tax planning for your business.

Sales and Use Tax

Every retail or wholesale merchant in the business of selling, renting or leasing taxable tangible personal property in North Carolina is required to obtain a Certificate of Registration, unless specifically exempt by statute. Once registered, you will receive information from the Department of Revenue on sales and use tax reporting and remittance requirements.

You can apply for your Sales and Use tax number online, complete the Web-Fill form (Form NC-BR) or contact:

North Carolina Department of Revenue

Sales and Use Tax Division
P.O. Box 25000
Raleigh, NC 27634-0001
Toll-free: (877) 252-3052

Withholding Taxes

State income tax must be withheld from employee wages and remitted to the NC Department of Revenue. Every employer must file for a withholding tax number.

You may apply for your Withholding Tax number online, complete the Web-Fill form (Form NC-BR) or contact:

North Carolina Department of Revenue

Withholding Tax Division
P.O. Box 25000
Raleigh, NC 27634-0001
Toll-free: (877) 252-3052

Privilege License Tax

The state privilege license tax is applicable to certain professions in North Carolina and should be applied for before business commences.

The privilege license is not a certification that the holder is qualified to perform a specific business or profession. It is a tax for the privilege of doing business in the state. BLNC counselors can inform you about any privilege licenses that may apply to you and your business. You can download the Privilege License application (Form B-202A) or contact:

North Carolina Department of Revenue
Tax Payer Assistance
P.O. Box 25000
Raleigh, NC 27634-0001
Toll-free: (877) 308-9103

Unemployment Insurance Tax

The unemployment insurance program in North Carolina is designed to provide temporary economic benefits to eligilbe workers. To determine the extent of your obligation, contact your local Job Service Center or:

Employment Security Commission
700 Wade Ave.
Raleigh, NC 27605
(919) 707-1170

Franchise and Income Tax

A franchise tax is imposed on corporations for the privilege of doing business in this state. This tax is due annually as long as the corporation remains incorporated, domesticated, or continues to do business in North Carolina. Questions concerning franchise and income tax obligations should be directed to:

North Carolina Department of Revenue
Corporate Income and Franchise Tax Division
P.O Box 25000
Raleigh, NC 27634-0001
Toll-free: (877) 252-3052

Federal Taxes

The IRS requires that every employer who pays wages to one or more employees file an application for an Employer Identification Number or EIN.

You may apply online (Form SS-4) or contact the IRS.

Internal Revenue Service Center
Attn: EIN Operation
Holtsville, NY 11742
Toll-free: (800) 829-4933
Fax: (631) 447-8960

County Property Taxes

As a business owner, you are responsible for listing your business personal property with the County Tax Assessor's Office. You must also provide the assessor with information concerning any real property improvements such as the addition of a new structure.